One thing I learned as a member of the Cosworth Vega Owners Association
is that if the club offers merchandise for sale, it can only sell to
club members, otherwise it won't be able to keep a non-profit status.
The CVOA makes available otherwise discontinued parts (such as timing
belts) only to members for exactly this reason.
-=Chris
Chris King
http://home.comcast.net/~kvcbk/
<-----Original Message----->
From: Jim Johnson [bmwwxman@gmail.com]
Sent: 1/6/2009 2:19:41 PM
To: John.Deikis@va.gov;John.Deikis@va.gov
Cc: spridgets@autox.team.net
Subject: Re: [Spridgets] NLBC: car club legal question
On Tue, Jan 6, 2009 at 10:58 AM, Deikis, John G <John.Deikis@va.gov>
wrote:
>
>
> 1. Do the officers and board of a car club have liability exposure if
> someone takes legal action against the club?
If the club is (and it should be - its cheap and easy) incorporated as a
non-profit corporation you are safe. The club can be sued for its
assets,
but individual officers/directors are safe. Contact your Secretary of
State's office. You can usually meet all the incorporation requirements
online. If you regularly handle sponsorships and donations you should
also
file an IRS form 1023 and get a 501(c)(3) status with the IRS. Then you
can
extend tax deduction to your donors making it more attractive for them
to
give you stuff.
> 2. Does anyone know if "Directors & Officers" insurance is commonly
> taken out by entities as podunk as a local British car club?
Given the above it is an unnecessary expense.
>
> 3. If a newsletter advertiser does not "do right" by a customer, and
the
> customer learned of the merchant through the club's newsletter, can
the
> customer name the club as well as the merchant in suit?
If you are a registered non-profit corporation all they can sue for is
the
corporation assets and they are unlikely to get even that if your
newsletter
contains a disclaimer in each issue.
> 4. Anybody know where I can read up on this sort of stuff?
Google "Non-profit Club incorporation benefits" or something like that.
Also
check out LegalZoom.com.
I had to find out about all this stuff by paying lawyers exorbitant fees
only to discover I could have done it all myself at minimal cost. The
lawyers have a real racket going here. Anyone with half a brain can do
this
stuff *IF* they find the instructions. The lawyers keep the instructions
to
themselves.... ;-)
--
Cheers!!
Jim
"A government big enough to give you everything you want, is strong
enough
to take everything you have." - Thomas Jefferson
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